Recently, the New York Times released an article titled, “Biden economy surging, but voters still see gloom”.
While this headline seems to be a contradiction in terms, this would largely be the consequences of the paradigm-shifting pandemic, where experts tracked a number of counterintuitive changes in the American (and global) economy:
- The stock market went up amidst a crippling pandemic with millions of deaths worldwide.
- Unemployment is down—but business cannot find enough workers.
- US and world GDP soared, but there is an increase in food banks
- World conflict is increasing everywhere
- Long-standing societies are becoming “bipolar”, with strong opposing viewpoints resulting in deep interpersonal conflicts and books such as “The next civil war in the US”.
So why would Americans—and Canadians, and most other citizens of developed nations—be mired in ‘gloom’ right now, when the glass is half full?
Well, the benefits of GDP growth have not been universally enjoyed. With pending inflation, rising interest rates, an ongoing pandemic, and political uncertainty, there are many factors creating this negative outlook—a ‘glass half empty’ perspective.
Uncertainty is the reigning sentiment. Just read the newswires, business reports, stock feeds, or weather channel.
We know gloom is here and very real. The question is, how do we all deal with it?
First and foremost, we must remember that this is not the time to take a short-term view of the situation. Everything has a cycle—markets, economy, taxes, and politics. This is not the first time in history we’ve experienced similar cycles, and that means we can learn from history.
Mitigating the doom and gloom can be done with mindful planning.
Instead of following the news cycle and making reactionary changes to your plans, return instead to the foundational questions that will keep you on the right path:
- What are your priorities?
- What are your strengths and weaknesses?
- Do you have a long-term plan that outlines what you need to feel safe and secure?
- What was the last time you reviewed your plan and made any changes?
- Do you depend too much on social media and other unaccredited news sources to keep informed?
- When did you last have a family meeting, or a meeting with your advisors?
What is IP Private Wealth?
IP Private Wealth is a Family Office—a team of wealth advisors that operates as a round-table board of advisors. Our 360° approach to examining your goals, wealth, and future needs is what makes us the first and only choice of family office for our clients. If you’ve been looking for a way to manage your wealth more effectively, reach out to us.
Understand that success is a marathon, not a sprint; those with solid plans and back-up plans are focused on resiliency and staying power. A series of incremental improvements and conscientious course adjustments will take you further than a mad dash of emotional and trendy snap decisions.
Number one way to reduce the gloom: cut back on your intake.
We are all bombarded with an overload of unvetted, unrefined information. When fears run high, we naturally try to absorb as much information from as many sources as possible, in an effort to keep ahead of any problems. But we’ll actually do better if we refine our information sources, and concentrate our attention on specific advisors. Every glass is both half-full and half-empty; your chosen advisors should help you to know which half you need to focus on right now.